By KEILE CAMPBELL

Tribune Staff Reporter

kcampbell@tribunemedia.net

ECONOMIC Affairs Minister Michael Halkitis is not concerned that The Bahamas may have to reevaluate its customs duties regime as the Trump administration considers retaliatory measures against countries that impose taxes on American imports.

“We export very little, mostly import, and we have customs duties attached to a lot of items,” he said yesterday. “So I’m not concerned about any sort of retaliation from that perspective and therefore us being forced to do something with our import duties.”

The Trump administration has pledged to impose new tariffs on key trading partners, including China, the European Union, and Canada, targeting automotive, steel, and technology industries. He has also signalled that his administration could impose tariffs on all countries that levy taxes on American imports, arguing such measures are necessary to protect US economic interests.

While dismissing concerns that The Bahamas could be directly impacted, he warned that rising US tariffs could increase the cost of goods for Bahamians, particularly for products routed through the US supply chain.

He noted that many Chinese-manufactured goods consumed in The Bahamas pass through the US, meaning increased tariffs could lead to higher prices locally.

Beyond potential price hikes, he said the broader concern is how escalating trade disputes could affect the global economy.

“What concerns me more as a minister is the potential impact it has on the economy of the US, economy of Canada, the economy in Europe,” he said.

He warned that a weaker US economy could threaten The Bahamas’ tourism industry, as declining American discretionary spending could lead to fewer visitors.

He also highlighted the uncertainty surrounding US trade policy, noting that while some tariffs were postponed following industry pressure, uncertainty remains a challenge for economic planning.

To mitigate potential risks from a global trade war, Mr Halkitis said the government is working to diversify trade partnerships beyond the US.

“One of the ways we can begin to sort of insulate or protect ourselves is things like increased agricultural production, and things like sourcing new markets, opening up new trade routes,” he said.

He added that expanding trade with Latin America, Africa, and the Caribbean could help strengthen food security and reduce The Bahamas’ reliance on US imports.